5/6/2021
By Tom Polansek and Julie Ingwersen
CHICAGO, May 5 (Reuters) - U.S. grain brokers and analysts
on Wednesday lamented CME Group Inc s decision to
permanently end open-outcry options trading at a time when crop
prices are surging, saying that pit traders could help navigate
volatile markets.
The owner of the Chicago Board of Trade (CBOT) on Tuesday
said it will never reopen physical trading pits it shut last
March due to the COVID-19 pandemic, though a Eurodollar options
pit will remain open.
Traders and brokers who work away from CBOT s grain pits
found it easier to execute complicated options transactions with
5/5/2021 By Tom Polansek and Julie Ingwersen CHICAGO, May 5 (Reuters) - U.S. grain brokers and analysts on Wednesday lamented CME Group Inc s decision to permanently end open-outcry options trading at a time when crop prices are surging, saying that pit traders could help navigate volatile markets. The owner of the Chicago Board of Trade (CBOT) on Tuesday said it will never reopen physical trading pits it shut last March due to the COVID-19 pandemic, though a Eurodollar options pit will remain open. Traders and brokers who work away from CBOT s grain pits found it easier to execute complicated options transactions with help from the floor. The pits also provided a reliable source for options quotes that are not always available in markets that are solely electronic, traders said.
iStock/Getty Images The market we are in is not typical and there are risks from the market going higher.
Suggested Event
Jun 15, 2021 to Jun 17, 2021
Typically, my time spent writing this blog will involve explaining our perception of the corn and soybean balance sheets, spotting actionable patterns in the market, or proposing methods to consider for managing farm profitability. But nothing is typical about the market we are currently dealing with and there are other risks to consider beyond prices dropping. These risks could be far worse than a drop in price and they involve the market going higher.
The word on the street is that a large market participant lost $90 million this week due to their exposure in the spread between May and July corn. Let’s walk through this together.
Morning Market Review for Dec 14, 2020 farmprogress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from farmprogress.com Daily Mail and Mail on Sunday newspapers.